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Non-banking financial company (NBFC) Mahindra Finance has pumped Rs 4 crore (nearly $588,000) in peer-to-peer (P2P) lending startup RupeeCircle, according to reports. Reports further claim that this investment will give Mahindra Finance 13% stake in RupeeCircle.
Both Mahindra Finance – part of the Indian conglomerate Mahindra & Mahindra – and RupeeCircle have refused to comment on the news report.
RupeeCircle is a very young player in P2P space, with startup being barely six months old. Based in financial capital Mumbai, RupeeCircle was founded by Ajit Kumar along with three other co-founders in January this year.
RupeeCircle operates on the same premise as most of the P2P lending platforms do. It seeks to effortlessly connect credit borrowers and lenders on its online platform.
P2P industry seems to be steering at a bright future
Although currently at a very nascent stage, P2P industry is predicated to grow at very robust pace in the coming years. According to experts, P2P industry can grow to touch almost $4 bn-$5 bn by 2023. Experts claim that P2P space can easily leverage on widely followed practice of bartering loans, which has been prevalent across prominent societies since centuries.
P2P space, of course, gives this traditional practice a modern twist with the help of cutting edge technologies like sophisticated algorithms, AI, machine learning, data analytics, etc.
There is also a buzz among investors for P2P startups. This is reflected from the fact that this year so far 4 to 5 startups have managed to decent funds from investors. These startups include Cashkumar, PaisaDukan, Finzy, Faircent.
Apart from the above mentioned players, as of today there are total 30-35 players in P2P space. Some of these prominent players include names like LendBox, LenDenClub, IndiaMoneyMart, Monexo, Rupaiya Exchange, LoanBaba, CapZest, i2iFunding.
